Legal manoeuvring by investors Nicole and Victor Armani was described by the High Court as ‘smacking of tactical conduct’ when ordering their company St Heliers 88 Ltd pay $630,000 into court while they dispute an arbitrator’s ruling that their company pay damages for misrepresentation on lease of an Auckland motel.
The court was told Sandip Singh’s Garcha Brothers Ltd walked away from its lease of a St Heliers property on St Johns Road operating as a sixteen-unit motel, alleging misrepresentations by the Armanis and their company.
In dispute were an allegation of unconsented alterations to the building by St Heliers 88 and an argument whether the motel units were allowed to be tenanted.
A 2025 arbitration found in favour of Garcha Brothers. It was entitled to cancel its lease and recover damages for wasted costs; primarily its borrowing costs, incurred funding its now-cancelled purchase of the lease.
Unhelpfully, St Heliers 88 refused to pay its previously agreed half share of arbitration costs. This forced Garcha Brothers to pay the full amount in order to uplift the arbitrator’s award, to learn it was successful.
St Heliers 88 then challenged the arbitrator’s ruling, claiming variously: Mr Armani had no authority to go to arbitration on St Heliers 88’s behalf; the arbitrator exceeded her authority; the process was in breach of natural justice; and the outcome was contrary to public policy.
Justice MacGillivray indicated there has been little evidence of substance to support these claims. St Helier 88’s High Court application to set aside the arbitration is weak and appears to be tactical, he said.
There is yet to be a full court hearing.
In the interim, St Heliers 88 was given six weeks to pay into court the $630,000 arbitration award in favour of Garcha Brothers.
Alternatively, St Heliers 88 may provide mortgage security acceptable to Garcha Brothers.
The court was told mortgage debt currently secured over St Johns Road exceeds the property’s value.
Should it fail to comply with these interim orders, Garcha Brothers can immediately register the unpaid $630,000 arbitration award as a default court judgment against St Heliers 88 Ltd, Justice MacGillivray said.
Garcha Brothers Ltd v. St Heliers 88 Ltd – High Court (9.12.25)
26.045